Starcloud wants to mine Bitcoin in space, if it can figure out how to cool the hardware

Bitcoin mining companies are constantly seeking ways to reduce operational costs, and some are considering the possibility of mining cryptocurrency in space. Starcloud, a company backed by Nvidia, aims to bring dedicated mining hardware aboard its second spacecraft, Starcloud-2, which is scheduled to launch in early 2027. CEO Philip Johnston asserts that Starcloud will be the first entity to mine Bitcoin in space, utilizing ASICs during the mission.

According to Johnston, a B200 GPU consuming one kilowatt of power costs around $30,000, while a similar ASIC consumes the same amount of power but costs approximately $1,000. Despite this, Starcloud's primary goal is to establish data centers in space, as demonstrated by its previous mission that sent an Nvidia H100 into orbit. The upcoming Starcloud-2 spacecraft will feature a GPU cluster, persistent storage, continuous access, and dedicated thermal and power systems, all set to orbit the Earth in a sun-synchronous path to harness solar power.

However, a significant challenge that Starcloud must overcome is cooling the hardware, as space presents a cold environment but lacks convection to dissipate heat. To combat this, the spacecraft must employ radiators that emit infrared radiation to transfer heat away from the electronics. The effectiveness of this process depends on various factors, such as the radiator's area, operating temperature, and surface properties.

Additionally, ASICs tend to become obsolete more quickly than GPUs, which means that the mining hardware may not generate sufficient revenue to cover its launch and cooling costs for an extended period.

Despite these challenges, Johnston believes that the combination of abundant solar power and the potential for lower operational costs could make space-based cryptomining an attractive proposition. Ultimately, the success of Starcloud's endeavor will hinge on the company's ability to effectively launch and manage the cooling of its hardware while ensuring the profitability of the ASICs throughout their lifespan.